I remember in one of the Monk quests, with that historian explaining some history about the war between Gridania and Ala Mhigo... He mentioned something about a staff (which was significant enough to be named and all) that was lost and captured by the Ala Mhigans after one of the Gridanian commanders launched a very foolish offensive.

Does the lorebook mention anything about this? I've a feeling that staff's going to turn up somewhere with the new expansion...